Royal Docks venue for £500m 50-acre business centre

By Philip Aldrick

12:00AM GMT 16 Feb 2001

DEVELOPMENT Securities, the property group, has been selected to build a business park on 50 acres of the old Royal Docks opposite the London City Airport.

The Royals Business Park will stretch for a mile along the dockside. The company, which is working with architects Aukett Europe, plans to develop a low-level campus of buildings with grass and water features. The site will include 1.6m sq.ft of office space and 100,000 sq.ft of retail and leisure space. Height restrictions due to low-flying aircraft will limit buildings to five storeys.

Details of the contract with the London Development Agency remain confidential. Development Securities' managing director Julian Barwick said: "We expect to work closely with the LDA to create a new business quarter." The agreement is the second the company has secured with LDA in 12 months - last April it was appointed to develop an 11-acre site in Paddington.

The first phase of the Royal Docks development is being funded by Aberdeen Property Investors, the Barclays Bank UK retirement fund and the Lattice Group pension scheme at a cost of £75m. They are likely to earn a total of about £10m on their investment. Construction of the 250,000 sq.ft office building begins in June and should be completed by autumn next year.

Development Securities estimates the value of the entire business park, which will take up to five years to build, at £500m. Tenants have yet to be found but DS anticipates interest from companies performing back office functions for businesses based in the City or Canary Wharf.